Published: November 03, 2009 10:04 pm      

Rebates, tax credits heat up geothermal option

Local utility encourages heating, AC replacement on older homes

EDMOND — Local rebates and federal tax credits will add up to significant savings for Edmond residents who switch to a geothermal heating and air conditioning system after the first of the year. Residents who live in homes more than 20 years old should definitely look at the opportunity, recommended Bob Corff, energy services manager for Edmond Electric.

Edmond Electric offers Edmond customers, both residential and commercial, an $800 per ton rebate on a new geothermal system. This is a shared rebate between the Oklahoma Municipal Power Authority and the City of Edmond.

The Oklahoma Municipal Power Authority, through a federal stimulus grant, will offer a $1,000 per ton rebate after the first of the year. This program, called the Oklahoma Comfort Program, has $3 million to cover rebates for residents of up to 36 member cities, of which Edmond is the largest. The program has been approved for state funding, but OMPA does not have a contract from the state. Until he has a contract, said Roger Farrer, OMPA energy services manager, he is not certain of the start date or whether new construction will be eligible for the rebate. OMPA hopes the start date will be Jan. 1. Although the program is scheduled to continue for three years, the $3 million may not last that long. To be eligible for the rebate, he said, geothermal systems must meet minimum qualifying criteria. They must be listed with the AHRI Air-Conditioning, Heating and Refrigeration Institute.

The federal government’s residential energy efficient property credit equals 30 percent of what a homeowner spends on qualifying property, including most geothermal heat pumps. Generally, labor costs are included when calculating this credit. Also, no cap exists on the amount of credit available for a geothermal system.

On top of savings from rebates and the tax credit, Corff said, heating and air make up about 60 percent of total energy use. In a 20-year-old home, geothermal will be twice as efficient as the older equipment. As a result, residents should save about one-third of their energy bill by switching to geothermal.

And, in a 20-year-old home, he said, the heating and air system has reached or is past its rated life.

Bob Willis, owner of Sunrise Alternative Energy at 500 S. Coltrane Road, said, “If your heating and air units are over 12 years old, you should seriously look at replacing them. The older units have a SEER rating of seven to eight, really inefficient compared to today.” With a geothermal heating and air system, he said, the SEER rating will be in the 22-23 range.

SEER stands for seasonal energy efficiency ratio. The higher the number, the more efficient the system.

“The tax credit is raising the awareness and raising the interest level in all our products and services significantly,” Willis said.

Andrea Fair, national program coordinator for Guaranteed Watt Savers, said the organization can help with an assessment, including a projection of utility costs saved, that can be used to get an energy improvement mortgage. Edmond Electric has a program for financing energy efficiency projects, as well.



EDMOND ELECTRIC customers planning a switch to geothermal in the near future should contact Edmond Electric at 216-7660. More information on the federal tax credit is available at www.irs.gov.